The Vivad Se Vishwas Direct Tax Scheme, 2024, was enacted to resolve disputes related to pending income tax litigation. The plan aims to give taxpayers peace of mind when resolving legal disputes. This scheme was reported October 1, 2024. Subsequently, several queries were received from interested parties seeking guidance regarding various provisions.
The income tax department then released a series of frequently asked questions (FAQs) to address these concerns.
These are some of the key questions that the Income Tax department has answered:
Which ones are not covered by the plan?
The scheme does not cover cases relating to an assessment year for which an assessment has been carried out under article 143(3)/I44/147/153A/153C on the basis of a search initiated under article 132/132A of the Law.
There are other cases in which the COFEPOSA Law, 1974; UAPA Act, 1967; NDPS Aet 1985; PBPT Act of 1988; PC Act, 1988; and PMLA 2002 may apply. These cases are also not covered by the Plan.
What are the various ways specified in the plan?
Four different forms have been notified for the purpose of this scheme.
Form-l: Form for filing declaration and undertaking of the declarant
Form-2: Form for the designated authority to issue a certificate
Form-3: Payment notification form by the declarant
Form-4: Order for full and final settlement of tax arrears by the designated authority
What are the various deadlines specified in the plan?
Various schedules specified in the scheme are as follows:
I. The taxpayer will submit a declaration and undertake in form-1 no later than December 31, 2024, to maintain the amount payable at the lower threshold.
II. The designated authority will issue Form-2 within a period of fifteen days from the date of receipt of the return to determine the amount payable by the taxpayer.
III. The taxpayer will pay the amount determined in Form-2 within fifteen days from the date of receipt of the certificate and will indicate the details of such payment in Form-3.
IV. On receipt of Form-3, the Designated Authority will pass an order in Form-4 stating that the taxpayer has paid the full and final amount.
What assessments will be deemed to have been made on the basis of the search initiated under section 132/132A of the Act?
Assessments under sections 153A or 153C are carried out on the basis of searches initiated under sections 132/132A. Therefore, these cases will not be eligible for the DTVSV 2024 Scheme.
What happens if the appeal is filed before the High Court or the Supreme Court and is pending admission on 22.7.2024?
Yes, you would still be eligible even if the appeal is pending before the High Court or the Supreme Court.
Are disputes related to wealth tax, ITS, commodity transaction tax and compensation tax covered?
No, only income tax disputes are covered. For more details, see THIS link.
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